(Bloomberg) — Charles Schwab Corp. in hedging interest rate risks this year, according to a regulatory filing on Monday.
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The filing said the company began hedging $3.9 billion in derivatives at the end of March.
After the Federal Reserve embarked on its most aggressive rate-tightening cycle in decades last year, Texas-based Westlake, Schwab, was caught up in the ensuing turmoil.
The conflict that engulfed US regional banks in March also affected Schwab, which runs both brokerage firms and banks. The company faced ballooning paper losses on the securities it owned and watched deposits drain as customers moved money into accounts earning higher interest. Schwab executives said those withdrawals would recede.
Schwab shares have fallen nearly 39 percent since March.
Read more: In Charles Schwab, being a big banker becomes a big deal
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